Confusion in approving plan on rearrangement and handling of houses and land upon equitization

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	Prime Minister criticizes localities that have delayed equitization
	SOE equitization fails to reach target

Organizations and individuals involved in delay in giving official comments on the plan on land use upon equitization, leading to re-determination of the enterprise value shall be criticized and handled. Photo: Internet

Plan on rearrangementand handling of houses and landapproved upon equitization

According to the Law on Management and Use of Public Assets and the Government's Decree 167/2017 / ND-CP dated December 31, 2017 on disposition of public assets, all enterprises with 100% State capital (including enterprises subject to or not subject to equitization) must formulate and submit to competent authorities for approval the planon rearrangement and handling of houses and land.

For enterprises subject to equitization, Decree 126 stipulates that theymust review all land under their management and formulate a plan on land usein accordance with the land law and law on rearrangement and handling ofhouses and land owned by the State and submit those plans to competent state agencies for consideration and approval before equitization.

In the implementation of equitization, there is still confusion in the formulation and approval of the plan on rearrangement and handling of houses and land under the law on management and use of public assets and the formation and approval of the plan on land upon equitization. Most enterprises subject to equitization are developing and submitting to competent authorities for approval therearrangement and handling of houses and land in accordance with the law on management and use of public assets and Decree 167. This arrangement process requires strict review and inspection.

Delay in commenting criticized

Mr. Pham Van Duc, Deputy Director of Enterprise Finance Department, Ministry of Finance, said: In order to clearly separate the plan for rearrangement and handling of houses and land in accordance with the law on management and use of public assets with the plan on land use upon equitization of enterprises, amendment to Decree 126 is required.

One of the amendments is the specific guidance on procedures, contents, and competence to approve land use plan upon equitization but still complies with thelaw on management and use of public assets. At the same time, there are additional regulations to help enterprises subject to equitization, representative agencies of land and house owners or localities (where enterprises have land area under management and use) give timely, adequate and accurate comments in accordance with the land law and the law on management and use of public assets for the land area managed by enterprises upon equitization.

Accordingly, based on the approved plan for rearrangement and handling of houses and land under the law on management and use of public assets; land use demands of enterprises under land use plan upon equitization; the land use zoning and planning and the construction planning at localities(if any), localities will give their comments on the land area that enterprises continue to use upon equitization and then enterprise owners will adopt this plan.

The localities will comment on the land use plan upon equitization for land areas that are not different from the plan on rearrangement and handling of houses and land approved by competent authorities and give their comments on the compatibility with land zoning and use plan, construction planningat localities (if any), the forms and purposes of use of land areas different from the approved plan on rearrangement and handling of houses and land, and areas that have been allotted, transferred or legally hired by enterprises before the time of approval of the plan on rearrangement and handling of houses land to the determination of enterprise value (if any).

If the plan on land use upon equitization is not in accordance with the land use zoning,planning and construction planning at localities (if any) or is different from the land use purposes according to the approved plan on re-arrangement and handling of houses and land, enterprises will have to revise the plan appropriately. If enterprisesdo not revise the plan on land use for these areas, these areas shall be returned to the State according to the land law; the value of assets attached to the land areas must be returned to the State (if any) and equitized enterprises must be handed over to local authorities for management; and the accounting for reducing assets and State capital under the remaining value of assets on the accounting book at the time of determination of enterprise value must be completed.

The Chairmenof the People's Committees of provinces and centrally-run cities (where enterprises have land areas under their use and management) are responsible for directing and urgently commenting on areas that ​​enterprises will continue to use upon equitization. The specific land prices shall be in accordance with the land law as a basis for determining the value of enterprises.

In particular, the Chairmen are also responsible for directing the review and treatment of organizations and individuals involved in delays in giving official comments on the plan on land use upon equitization, leading to re-determination of the enterprise value.

Bottlenecks in SOE equitization need to be removed

The draft Decree amending and supplementing Decree 126 will be submitted to the Government by the Ministry of Finance in the first quarter of 2020.